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The current financial crisis: what should we learn from the great depressions of the Twentieth Century?

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  • Gonzalo Fernández de Córdoba
  • Timothy J. Kehoe

Abstract

Studying the experience of countries that have experienced great depressions during the twentieth century teaches us that massive public interventions in the economy to maintain employment and investment during a financial crisis can, if they distort incentives enough, lead to a great depression.

Suggested Citation

  • Gonzalo Fernández de Córdoba & Timothy J. Kehoe, 2009. "The current financial crisis: what should we learn from the great depressions of the Twentieth Century?," Staff Report 421, Federal Reserve Bank of Minneapolis.
  • Handle: RePEc:fip:fedmsr:421
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    Cited by:

    1. Elena Martínez-Ruiz & María A. Pons, 2014. "Las crisis financieras en perspectiva histórica: paralelismos entre el pasado y el presente," Investigaciones de Historia Económica (IHE) Journal of the Spanish Economic History Association, Asociacion Espa–ola de Historia Economica, vol. 10(02), pages 77-80.
    2. Michel De Vroey, 2009. "Economic liberalism and crisis," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 70, pages 11-38.
    3. De Vroey, Michel, 2009. "El liberalismo económico y la crisis," REVISTA LECTURAS DE ECONOMÍA, UNIVERSIDAD DE ANTIOQUIA - CIE, July.
    4. Ruy Lama, 2011. "Accounting for Output Drops in Latin America," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 14(2), pages 295-316, April.
    5. Ana María Cerro & Osvaldo Meloni, 2014. "Making explosive cocktails: Recipes and costs of 20 Argentine crises from 1865 to 2004," Investigaciones de Historia Económica (IHE) Journal of the Spanish Economic History Association, Asociacion Espa–ola de Historia Economica, vol. 10(02), pages 104-114.

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